Mortgage mis-sold??

dunstonh

he was concerned, unlike you, that the LIBOR was not fully explained as it should be.

It doesn't need to be. There is no regulatory requirement for it. It certainly does no harm but no rule breach has taken place if it isn't explained.

I'm not suggesting that this is the case but I have heard of advisers slating a previous sale to get the client on side, it's an old tactic but does appear to work.

That is unfortunately something that does happen. Another one is where they just agree with you that it was bad as it makes them look better in your eyes. Plus its the route of least resistance. Some may think that if they disagree with you that you will not view them as friendly.

The problem with any complaint is that you are looking for a rule breach (as that is the only thing that will benefit you). So far, there appears to be no actual rule breach. High fees, yes, perhaps not as informative as they could be, yes. Rule breach, no.

mac_saver

dunstonh wrote: »

It doesn't need to be. There is no regulatory requirement for it. It certainly does no harm but no rule breach has taken place if it isn't explained.



That is unfortunately something that does happen. Another one is where they just agree with you that it was bad as it makes them look better in your eyes. Plus its the route of least resistance. Some may think that if they disagree with you that you will not view them as friendly.

The problem with any complaint is that you are looking for a rule breach (as that is the only thing that will benefit you). So far, there appears to be no actual rule breach. High fees, yes, perhaps not as informative as they could be, yes. Rule breach, no.

Hi thanks again for all the help, of the 2 independant brokers who looked at our deal neither could help, neither had anything to gain or were given any indication by us as to our dis-satisfaction with our previous deal, in fact it was them who first put the doubts in to our minds that we were treated fairly. Whilst I trust your info regarding the LIBOR rate it just does not seem fair that something as important as this, the biggest financial commitment in most peoples lives, is not fully explained to the average man in the street who knows so little about these things, this surely cannot be fair?

poppy10_2

mac_saver wrote: »

the biggest financial commitment in most peoples lives, is not fully explained to the average man in the street who knows so little about these things, this surely cannot be fair?

It is the biggest financial commitment you have ever made. So why did you think it was OK not to bother to read the few pages that comprised your KFI?

mac_saver

poppy10 wrote: »

It is the biggest financial commitment you have ever made. So why did you think it was OK not to bother to read the few pages that comprised your KFI?

We did read it and were aware that the cost could go up or down like most people do, we were also aware of the fees but thought no more about them. Most ordinary people either do not read or understand KFI's and are reliant on their advisors to be open and honest with them in explaining them fully, I dont think that was the case this time.
Guys this is not a witch hunt against financial advisors! I am fighting to keep my family home and yes perhaps i did act hastily but i was doing the same thing then and was vulnerable.

arkie

Im sorry but you were given plenty of time to study the KFI, after you had been left the KFI you had chance to call off the mortgage/remortgage. You let the valuer have access to the property if it was a remortgage, (SPML never did drive by valuations) you then had the mortgage offer to study,you will have then had to complete forms for the solicitor, the solicitors involved always recommend independent legal advice, normally stated on the offer, which if you didnt understand any of it you could have taken it a solicitor. In my years of experience (15 years) ordinary people do read the KFI. The only people I know who dont are people who are more concerned about getting the extra money off the remortgage or getting into that 'dream property'.
Assuming your credit rating has not detoriated in the last 2 years , you should not have a problem, income should now be provable ( P60's etc).
I dont think this is a case of mis-selling

mac_saver

arkie wrote: »

Im sorry but you were given plenty of time to study the KFI, after you had been left the KFI you had chance to call off the mortgage/remortgage. You let the valuer have access to the property if it was a remortgage, (SPML never did drive by valuations) you then had the mortgage offer to study,you will have then had to complete forms for the solicitor, the solicitors involved always recommend independent legal advice, normally stated on the offer, which if you didnt understand any of it you could have taken it a solicitor. In my years of experience (15 years) ordinary people do read the KFI. The only people I know who dont are people who are more concerned about getting the extra money off the remortgage or getting into that 'dream property'.
Assuming your credit rating has not detoriated in the last 2 years , you should not have a problem, income should now be provable ( P60's etc).
I dont think this is a case of mis-selling

Granted we did have a little time to read the KFI and the option to do what you have said, but as stated we were in a hole needed to act fast and the broker took care of all the paperwork and legal stuff for us "to help us out" and returned it in the post for signing very quickly, yes we could have and should have got a second opinion and feel very stupid for not doing that, but after listening to all your arguements on here i am still left with a bad taste in my mouth regarding this deal, harsh lesson learnt you may say, because you are in the know its your business, do you all explain the finer details to your customers? or is a deal a deal no matter how it is acheived? my financial naivity should not have been preyed upon in my opinion.
My credit rating has now got worse because of mortgage arrears and a CCJ and basically i am stuck.

_Andy_

I don't mean to sound harsh here but how is the mortgage arrears and the CCJ the fault of the adviser who sold you the mortgage?

arkie

If you would not have got a CCJ and had mortgage arrears you would have got a mortgage. So no mis-selling. You are hoping somebody else will pay for your mistakes.
I dealt with a client at the begininng of the week with mortgage arrears, they had sky multi room (£75pm) contract mobiles(£25pm each) broadband(£15pm), 2 cars but only needed 1, but didnt pay their mortgage. I had to tell her to prioritise things, pay the mortgage, gas, electric, council tax, food then luxuries if more people did this they wouldnt get into a financial mess. Look around and see what you could save money on.
My client are clearly informed, left a KFI told to study the mortgage offer, clients have plenty of time to ask questions, remortgaging doesnt happen overnight,it takes 2-6 weeks.
Did you release capital from your mortgage? If so what did you do with it?.
What was your credit rating like when you took the remortgage on? defaults, ccjs?
Who was your previous lender?
The adviser posted you some legal stuff and you signed it !!!!! come on that would not stand up in a court of law. The onus is on you to read and understand what you are signing.

dunstonh

Dont take the responses as being an attack back on you (as we are not treating yours as an attack on advisers). These are the sort of things that will come up if you pursue a complaint to the FOS.

Most ordinary people either do not read or understand KFI's and are reliant on their advisors to be open and honest with them in explaining them fully, I dont think that was the case this time.

The KFI is possibly one of the few things the FSA has got right. It is kept simple and short and highlights all the key facts. On face to face appointments the key points of the KFI should be read to you. However, you should obviously read it yourself as well. If you dont understand some of the recommendation or comments on the KFI then you should let the adviser know. Unless you tell the adviser you dont understand they are going to assume you do.

The only possible area of complaint you may have based on what you have written so far is if what you have is a sub prime mortgage when you could have qualified for a prime or near prime mortgage.

mac_saver

_Andy_ wrote: »

I don't mean to sound harsh here but how is the mortgage arrears and the CCJ the fault of the adviser who sold you the mortgage?

Not blaming him for the CCj that was answering another question, the arrears are now on my account because for the past 2 months i have not been able to find the extra £400 my mortgage has gone up by due to my deal being linked to the LIBOR rate i would never of signed signed for if it would have been explained to me in the first place,and yes before it is said again my own fault for trusting a financial advisor i didnt know, desperate times make you open and fair game!